Shenghui Clean's stock price plummeted 5.50% during Tuesday's intraday trading session following the release of the company's full-year financial results for 2025.
The company reported a significant decline in profitability despite modest revenue growth. According to the earnings announcement, Shenghui Clean's net profit attributable to shareholders dropped by approximately 46-49% year-on-year, falling to around 26 million yuan. While revenue increased by about 3.2% to 695 million yuan, the net profit margin narrowed substantially from 7.3% to 3.6%.
The sharp decline in profitability was attributed to fair value losses on financial assets at fair value through profit or loss, which offset the revenue growth from property management services and a widening gross profit margin.